ABSTRACT

This chapter presents some questions that are helpful for the construction professionals of all kinds who frequently need legal advice that is straightforward as well as authoritative and legally rigorous. Current building contracts do not appear to allow the continued deduction of liquidated damages after termination. In any event, the circumstances set out in the question suggest that, even if the contractor's employment was not terminated, liquidated damages would not be due until a further month had passed, because at the date of termination the date for completion had not been reached. Set-off is when two parties owe money to each other. It frequently occurs in the construction industry when a contractor pays a sub-contractor for work done but reduces the amount because the sub-contractor has caused a delay or done some damage which the contractor will have to pay to get repaired.